The following insurance tips for small business will help you make wise decisions regarding your commercial insurance, and get the best value for your money.
Shop Around
No two insurance policies are the same. Even if every detail of the policy is the same, quotes from two different companies can really vary. By shopping around you can save money and even potentially discover options you didn’t know existed.
Understand Your Policy
Your business insurance policy is only valuable if you understand the details. You need to know what warranties exist and what actions they require you to take. You also need to know what circumstances allow you to make a claim. Without this understanding, you aren’t getting the benefits you are paying for.
Annually Review Your Policy
Every year you should review your policy for three reasons:
- Premium costs may change, either for your policy or for a competing policy. A good deal today may be a poor deal a year from now. And you may now qualify for discounts so be sure to ask how you can lower your rates.
- Your needs may change. By reviewing your policy, you ensure that your commercial insurance policy is still providing all the benefits you need and isn’t providing benefits that are no longer useful to you.
- Appropriate Limits. The size of the limits on your business insurance policy should be dependent on the size of your business and potential losses. If your business has grown in the past year, you may want to increase your limits. Conversely, if your business has shrunk, decreasing limits may be able to save you money without adding risk.
Liability Insurance
Every business, no matter how small, should have liability insurance. Without it, an accident by a customer or employee could bankrupt you. If you have a business that is generally considered safe, this doesn’t cost much, but protects you immensely.
Commercial Auto Insurance
If you, or any member of your staff, use their personal car for commercial purposes, you need commercial auto insurance. Without this, you may not be fully covered in case of an accident.
Errors and Omissions Coverage
This type of insurance is one that many small businesses don’t realize they need. You only need it if you provide consultation services. Essentially, this is liability insurance for advice given to clients. If you make a mistake and it costs your clients money, errors and omissions insurance will protect your business.
Discuss Your Insurance With a Professional
The best way to ensure that you have the optimal business insurance for your small business is to talk to a professional insurance broker. Expert advice from an industry insider is the best way to protect your business.
No Time to Shop Around?
No problem. That’s what insurance brokers do for their clients every day. If you have any questions, or would like some no obligation quotes, please contact Sean McNamara at Mitchell & Whale Insurance Brokers at 1-800-731-2228 or email me at smcnamara@nullmitchellwhale.com. I’d be happy to help you with any type of commercial insurance.
